Families in danger of losing their home, especially during the holidays and into the New Year, may be going through significant stress and strain. A number of home owners may not have expected home values to decline so rapidly leaving them unable to meet their mortgage debts and facing foreclosure.

Other factors outside of the control of homeowners, such as increased expenses for everyday items such as gas or heat, may have made mortgages homeowners once thought they could meet unmanageable. Additional factors such as wage stagnation and unemployment, including job losses, may have compounded difficult situations and left homeowners facing foreclosure fears. Homeowners may have fallen behind on mortgage payments and may feel overwhelmed and left wondering what options they may have available to them.

Certain legal options may be available to struggling homeowners facing foreclosure such as bankruptcy options. Chapter 13 bankruptcy may allow struggling homeowners to stop or eliminate the foreclosure process. Chapter 13 bankruptcy, in general, is a type of bankruptcy that allows the applicant with a reliable source of income to restructure their debts. Chapter 13 bankruptcy may help the filing party restructure their mortgage and satisfy the past due amounts over time to avoid foreclosure.

In addition, once a bankruptcy filing is made, an automatic stay goes into effect which will halt foreclosure proceedings while the bankruptcy process proceeds. Additional options, including legal options and negotiations, may also be available to help stop foreclosure and enjoy debt relief. Different bankruptcy options are available to help consumers struggling with debt so it is helpful for individuals considering filing for bankruptcy to be aware of the different options available to them and how different bankruptcy options may be able to help their unique needs and circumstances.